Business / Financial Markets | TSE DATA & REPORT

Nikkei retreats to 22,200 as traders take money off table

JIJI

Stocks turned lower Wednesday on the Tokyo Stock Exchange as selling ensued to lock in gains.

The 225-issue Nikkei average sagged 59.74 points, or 0.27 percent, to end at 22,200.00, after rising 41.84 points on Tuesday.

The Topix index of all first-section issues closed down 10.92 points, or 0.67 percent, at 1,612.05. It rose 4.35 points the previous day.

Profit-taking wiped out early gains that followed Wall Street’s overnight advance, brokers said. Weakness in Shanghai stocks also weighed on Japanese shares, they said.

An official of an online securities firm said, “Profit-taking emerged prior to the (10-day) holiday” in Japan starting Saturday. Market players were increasingly shrinking their positions, the official said.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., said that investors adopted a “strong wait-and-see stance” ahead of the peak of earnings announcements in Japan on Friday.

He added that stocks’ downside was solid as the S&P 500 index and the tech-heavy Nasdaq composite index closed at their all-time highs in New York trading Tuesday.

Losers trounced winners 1,510 to 547 in the TSE’s first section, while 79 issues were unchanged.

Volume grew to 1.213 billion shares from Tuesday’s 995 billion shares.

Kose dropped 3.98 percent on a news report that the cosmetics maker’s consolidated operating profit fell short of its forecast in the year through March.

Other major losers included convenience store operator FamilyMart Uny, auto parts supplier Denso and Sony.

By contrast, Nidec closed 0.76 percent higher the day after the motor maker provided upbeat profit estimates for the year ending in March 2020.

Also bought were employment information service firm Recruit Holdings, clothing chain operator Fast Retailing and technology investor SoftBank Group.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average fell 70 points to end at 22,170.